EU Offers Carbon Market Concessions to Tame Energy Prices

The European Union proposed a limited adjustment to its carbon trading program to curb the impact of emissions costs on soaring energy bills, and pledged flexibility to avoid placing an excessive burden on industry during a transition to cleaner technologies.

Energy prices are at the top of the bloc’s political agenda as concerns over its declining competitiveness compared to China and the US have been exacerbated by tensions in the Middle East. The European Commission offered to make supply controls in the EU Emissions Trading System more flexible and floated concessions on free carbon permits for heavy industry.